Added to YB: 2026-08-25
Pitch date: 2026-07-29
CVU [bullish]
CPI Aerostructures, Inc.
+14.68%
current return
Author Info
Matheus Lonning shares independent research. Small/micro cap focus. Long biased. Sign up for the newsletter.
Company Info
CPI Aerostructures, Inc. engages in the contract production of structural aircraft assemblies for fixed wing aircraft and helicopters in the commercial and defense markets.
Market Cap
$71.4M
Pitch Price
$4.70
Price Target
10.00 (+86%)
Dividend
N/A
EV/EBITDA
11.35
P/E
18.69
EV/Sales
1.34
Sector
Aerospace and Defense
Category
value
CPI AEROSTRUCTURES, INC ($CVU)
CVU: FY26 Q1 (Mar): rev $17.4M (+12.7% YoY), gross margin 25.8% vs 10.7%, net income $1.2M vs $1.3M loss, adj EBITDA $2.1M vs -$0.8M—swinging back to profitability. Thesis is $495M backlog (~7x FY25 sales; $96M funded) plus new awards (NGJ Low Band $13.6M, T-38 $8.3M) driving re-rating. FY25 EBITDA was $1.0M reported but ~$5.5M ex-A-10 termination charge. Author sees ~8x FY26 EBITDA vs peers at 10-11x; 1yr PT $10 (~132M cap) vs $4.7. Optional upside if A-10 retirement reversed forces Boeing to renew. Risks: ~$19M debt/$1M cash, working-capital intensity, and backlog conversion/margin durability—execution is the whole story.
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